EXCLUSIVE: Google clarifies after Delhi High Court's notice questioning Google Pay's authorisation

Delhi High Court is seeking a response from Google and Reserve Bank of India (RBI) over PIL against Google's UPI payments app Google Pay (GPay). PIL filed by Abhijit Mishra claims that Google Pay app fails to comply with RBI's Payments and Settlements Act which renders app unauthorised to operate in country.

RE | Google Pay UPI payments app t 'authorised' by RBI; Delhi High Court issues tice

In an exclusive statement to Republic World, Google has clarified its stand on a tice issued by Delhi High Court questioning Google Pay's authorisation. Here's what company has to say:

"Google Pay complies with all applicable legal requirements. Google Pay operates as a techlogy service provider to its partner banks, to allow for payments through UPI infrastructure, and is t part of payment processing or settlement. re is requirement for licensing of se services under prevailing statutory and regulatory provisions. In order to support our partner banks, our efforts in complying with government's data localisation rms are underway, and given scale and complexity, we are being mindful to prioritise data security and uninterrupted services to our users as we make this transition. central bank is apprised of progress and we remain committed to complying with laws of land," Google spokesperson told Republic World.

Here's what whole issue is all about

A bench of Chief Justice Rajendra Men and Justice A J Bhambhani posed query to RBI while hearing a PIL which claimed that Google Pay (GPay) was operating as a payments system provider in violation of Payments and Settlements Act as it has valid authorisation from central bank to carry out such functions.

court issued a tice to Reserve Bank of India and Google India seeking ir stand on issue raised in plea by Abhijit Mishra, who contended that GPay does t figure in RBI's list of authorised 'payment systems operators' released.

"How are y (GPay) operating without permission," bench asked RBI, and listed matter for furr hearing on April 29.

Mishra has also raised privacy concerns by claiming that "GPay through its unauthorised operation in India as a payment and settlement systems has un-monitored and unauthorised access to personal information such as Ahaar, PAN, (financial) transactions etc. of public".

petition has sought a direction to RBI to order Google to "immediately" stop GPay's "unauthorised operation" in India.

In response to a query about payment system operators, RBI has said that its authorisation was mandatory for setting up such a mechanism in India, petition stated.

RBI also said that GPay was t on list of authorised payment system operators, plea stated, ding that "as on March 30, 2019, GPay is t a listed partner of Bhim Ahaar app as per official website of Bhim Ahaar".

Bharat Interface for Money application, also kwn as 'BHIM app', has been developed by National Payments Corporation of India (NPCI) for facilitating payments through mobile phones, petition said.

It has furr said that RBI's master circular of April 6 last year on stor of payment system data states that all such entities should ensure that entire data related to payment systems operated by m are stored only in India.

"Google Pay by virtue of unauthorised access to BHIM Ahaar Unified Payments Interface (UPI) can have serious detrimental effect on privacy and personal liberty of Indian citizens as data might be stored in servers located outside India.

"This is in gross violation of principals enshrined under purview of Article 21 of Indian Constitution by letting an unauthorised private company to access personal account details of Indian citizens," Mishra, who claims to be a financial ecomist, has claimed in his plea.

petition has also contended that GPay was operating in "complete defiance" of RBI's scheme to constitute an ombudsman for redressal of complaints against deficiency in services related to digital transactions.

petitioner has sought a "compliance audit" of GPay under Payments and Settlements Act and to impose penalties on Google India for GPay's unauthorised operation in contravention of laws, regulations and procedure."

(With ncy inputs)